Name: The Financial Times Guide to Investing By Glen Arnold
SKU: 9780273663096
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The Financial Times Guide to Investing Summary

The Financial Times Guide to Investing: The definitive companion to investment and the financial markets by Glen Arnold

No need to be baffled any longer by a flurry of information, data, facts and comments, impenetrabel waves of jargon, and the complexities of the financial markets. The Financial Times Guide to Investing will introduce you to the complex art of investing, and how to invest successfully, whether you are actively involved in investing or just thinking about it. In addition to providing a simple guide to understanding how financial markets operate, it will allow you to follow and act on your own judgements based on case studies and worked examples, giving you the chance to experiment successfully with shares, bonds, funds and derivatives. The book is written in a clear and uncluttered manner taking many examples and case studies from the FT.

About Glen Arnold

Glen Arnold is a Visiting Professor of Corporate Finance at Salford University. He has published work directed at a full range of types of readers, from refereed journal articles directed at fellow academics to introductory finance and investment for the complete novice.

CONTENTS *Introduction PART I INVESTMENT BASICS Chapter 1 What is investment? Back in time Partnerships A company with limited liability Ordinary shares and extraordinary returns Shareholder rights A money making machine Dividends and retained earnings What if I want to sell? Primary and secondary markets Bonds Capital structure Stocks and shares Rights issues Financial Institutions Investment banks The asset transformers Pension funds Insurance companies The risk spreaders Be proud to be a capitalist! A note of warning -- Investment and speculation Chapter 2 The rewards of investment. Becoming a millionaire A little more realism Simple and compound interest An analogy What investors have received in the past Decade by decade The importance of income International comparison Equity versus gilt performances What about risk? Closing comment Chapter 3 Stock Markets. What is a stock market? Brokers and market makers Pricing -- good old supply and demand A short history of the London Stock Exchange Big bang Chinese walls Recent moves The international scene Variety of securities traded The primary market The secondary market The Official list (the 'Main' market) The Alternative Investment Market TechMARK and the other MARKs OFEX Who owns UK shares? Tasks for stock exchanges Useful websites Chapter 4 Buying and Selling Shares. Stockbroker services Choosing a stockbroker Finding prices What happens when I buy or sell shares? Small or infrequently traded shares An alternative mechanism What happens after dealing? Ways of paying for your shares Internet dealing Transferring shares without brokers Websites PART II THE INVESTMENT SPECTRUM Chapter 5 Pooled investments. Unit trusts Pricing Charging Reading the FT How do you buy or sell units? Who looks after the unit holder's interests? Types of trusts available Returns Minimum investment Following your units' progress Switching funds Points to bear in mind when choosing a unit trust OEICs ETFs Advantages of ETFs Investment trusts (Investment companies) Discounts and premiums Costs for the investor Borrowing Tax Split-capital investment trusts ('Dual capital' trusts) Websites With-profit policies Taxation The controversy over with-profit funds Unit-linked policies Insurance company bonds Stock market-linked bonds Hedge funds Fund supermarkets Websites Chapter 6 Bonds. Gilts Prices and returns Yield Quotes Buying and selling gilts Cum-dividend and ex-dividend Index-linked gilts Corporate Bonds Debentures and loan stock Trust deeds and covenants Repayments Bond variations Trading in the corporate bond market Credit rating High-yield (junk) bonds Convertible bonds Foreign bonds Eurobonds Chapter 7 Unusual share investment Business angels Venture capital Private equity Points for investors concerning Angel and Venture Capital Overseas shares Points to consider about investing abroad Some useful websites for investors in overseas shares Preference shares Chapter 8 Options What is a derivative? A long history What is an option? Share options Call option holders (call option buyer) Call option writers An example of an option writing strategy LIFFE share options Put options Traditional options How to trade options (and futures) Using share options to reduce risk: hedging Using options to reduce losses Index options Hedging against a decline in the market using index options Chapter 9 Futures Marking to market and margins Worked example showing margins Settlement Worked example: hedging with a share index future Universal Stock Futures (Single Stock Futures) Using USFs to reduce risk Buying and selling futures Chapter 10 Spread betting, Contracts for difference and Warrants Spread betting Money up-front Types of bet Uses of spread betting Further points Contracts for difference Additional points on contracts for difference trading Warrants Covered warrants More on covered warrants Example of covered warrant use -- releasing cash while maintaining exposure to a share PART III COMPANY ANALYSIS Chapter 11 Company Accounts. Oh no! Not numbers again! How to obtain the report The report and accounts Profit and loss Balance sheet Cash flow statement Chairman's statement Chief executive's review (Operational review) The Director's report Financial review Auditor's report Five-year summary Reading Chapter 12 Key investment ratios and measures. From the financial pages Price-earnings ratio (PER) Dividend yield Dividend cover, payout ratio and retention ratio Market capitalisation Net asset value (NAV) Market to book ratio Enterprise value (EV) Performance Ratios and measures Profit margins Gross profit margin Operating profit margin Pre-tax profit margin Return on capital employed (ROCE) EBITDA Free cash flow Owner earnings Financial health ratios and measures Gearing Capital gearing Income gearing Current ratio Quick ratio Forward looking measures Dividend valuation model (DVM) Intrinsic value Reading Chapter 13 Some of the tricks of the accounting trade. Goodwill Fair value What was our revenue again? Exceptional items Stock (inventory) valuation Depreciation Capitalisation Off-balance-sheet Share (Stock) options Other tricks Concluding comment Reading Chapter 14 Analysing the industry The competitive floor The five competitive forces Threat of entry Intensity of rivalry of existing companies The threat from substitutes Buyer (customer) power Supplier power Industry evolution Technological change Learning Economic Government Social Concluding comments Reading Chapter 15 The competitive position of the firm. The TRRACK system Tangible Relationships Reputation Attitude Capabilities Knowledge What makes resources extraordinary? Demanded Scarcity Appropriable Investment in resources Leveraging resources and over-exploiting them Concluding comments Reading PART IV MANAGING YOUR PORTFOLIO Chapter 16 Companies issuing shares. New issues The sponsor The prospectus Finding out about new issues Underwriting The role of the corporate broker After flotation Methods of flotation Timetable for a new issue Under-pricing and stagging How does an Alternative Investment Market (AIM) flotation differ from one on the Official List? Right issues An example What if a shareholder does not want to take up the rights? Ex-rights and cum-rights The price discount decision Information on rights issues Other equity issues Placings and open offers Vendor placing Bought deal Information on share issues Scrip issues Share buy-backs and special dividends Chapter 17 Taxation and investors. Stamp duty Tax on dividends Capital gains tax Tips on reducing CGT Interest-bearing instruments Inheritance tax, IHT Individual savings accounts, ISAs Personal Pensions Enterprise investment scheme Venture capital trusts Off-shore investment Chapter 18 Mergers and takeovers. Merger motives In the interests of shareholders Managerial motives Third party motives Financing mergers Cash Shares Other types of finance The rules of the takeover game The regulatory bodies Pre-bid The bid Post-bid Defence tactics Information Who wins from mergers? Chapter 19 Investor protection. Protecting investors from wayward financial service professionals Authorisation If you have a complaint Compensation Regulation of markets Regulating companies Self protection Chapter 20 Measuring performance: indices and risk. Indices Risk Volatility Diversifiable risk Correlation Beta Sharpe ratio Treynor's ratio Different types of risk Liquidity risk Event risk Political risk Exchange rate risk Market risk Manager risk Inflation risk Websites giving risk of shares and indices Websites giving information on risk of funds (unit trusts, investment trusts and OEICS) Reading Chapter 21 Investment clubs. How to set up a club The unit valuation system Bank account Brokers Tax Reading Glossary. List of useful Internet addresses.

Additional information

Sku

GOR001383178

ISBN 13

9780273663096

ISBN 10

0273663097

Title

The Financial Times Guide to Investing: The definitive companion to investment and the financial markets by Glen Arnold

Author

Glen Arnold

Condition

Used - Very Good

Binding type

Paperback

Publisher

Pearson Education Limited

Year published

2004-04-22

Number of pages

432

Prizes

N/A

Cover note

Book picture is for illustrative purposes only, actual binding, cover or edition may vary.

Note

This is a used book - there is no escaping the fact it has been read by someone else and it will show signs of wear and previous use. Overall we expect it to be in very good condition, but if you are not entirely satisfied please get in touch with us

The Financial Times Guide to Investing Glen Arnold

The Financial Times Guide to Investing by Glen Arnold

Summary

The Financial Times Guide to Investing Summary

The Financial Times Guide to Investing: The definitive companion to investment and the financial markets by Glen Arnold

About Glen Arnold

Table of Contents

Additional information

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